Answer:
it is just as easy to start a business overseas as it is in the U.S.
Explanation:
Foreign trade is the exchange of goods and services across international borders.
For example, if a car is bought from china and brought into the US, foreign trade has occurred.
Foreign trade has two components :
export would comprise of goods and services produced in the US that are been sold to foreign countries
Import would comprise of foreign produced goods and services that are been sold in the US
Reasons for participating in foreign trade
- According to economic theory, a country should specialise in the production of good for which it has a comparative advantage and import goods for which it does not have a comparative advantage in its production . A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
- Some countries do not have the resources needed to produce all the goods needed e.g. some countries do not have crude oil and would have to import from oil producing countries
- For most countries, it is impractical to produce all the goods they need.
Answer:
Veronica will pay more taxes and Matt will pay less taxes to the government
Explanation:
In a progressive tax system, the percentage rate of taxation increases as the income rises. It means that individuals with a high income will be taxed at a higher tax rate than low-income earners. A progressive tax rate is based on an individual income level; the higher the income, the higher the tax rate.
Veronica earns more than Matt. Under the progressive tax system, veronica will be taxed at a higher rate than Matt. Therefore, veronica will pay more taxes than Matt.
Answer:
Orange consumers will bear the burden of now having to pay a higher price than they previously did.
Explanation:
According to the question, orange growers believe that pesticides is a crucial input in the production of oranges. When the government imposes a tax or regulation on the use of pesticides, this is likely to cause the following effects:
1. Since pesticides is an input that is now taxed, cost of production increases
2. Producers will reduce the supply of oranges.
3. Supply curve shifts left from S1 to S2 (refer diagram)
4. Market equilibrium shifts from E1 to E2 (refer diagram)
5. Quantity supplied falls from QS2 to QS1 (refer diagram)
6. Price increases from P1 to P2 (refer diagram)
<em>In what sense do consumers of oranges now "pay" for dealing with the spillover costs of pesticide production?</em>
Orange consumers will bear the burden of now having to pay a higher price than they previously did.
Answer:
The answer is <u>"$110 billion".</u>
Explanation:
Firms increase their investment by $11 billion
mpc = 0.9
gdp = ?
To find the gdp, first we have to find expenditure multiplier;
we will find that by using the formula;
expenditure multiplier = 1/(1-0.9) = 1/0.1 = 10
Now gdp = 10 x $11 billion
= $110 billion
Thus the <u>gdp is $110 billion.</u>